Bonds & Stocks
A banner year for stocks is drawing to a close, with gains in big tech leaving the market near all-time highs amid the artificial intelligence exuberance and dovish Federal Reserve bets. With only two sessions left before the final closing bell of 2023, the Nasdaq 100 is poised for its best year since 1999 and the S&P 500 is just a few points away from its record. The gauge is roughly 1% below the average full-year gain predicted by analysts in a survey published last week, which forecast the index would end 2024 at 4,833.
Economy
Initial applications for US unemployment benefits increased in the week leading up to Christmas, while remaining at a level that is consistent with a resilient labor market. First-time claims rose by 12,000 to 218,000 in the week ended Dec. 23. The figures tend to be volatile around the holidays. The four-week moving average, which offers a clearer picture of the trend, was little changed at 212,000 last week, the lowest since late October.
World
Half of the container-ship fleet that regularly transits the Red Sea and Suez Canal is avoiding the route now because of the threat of attacks, according to new industry data. The tally compiled by Flexport Inc. shows 299 vessels with a combined capacity to carry 4.3 million containers have either changed course or plan to. That’s about double the number from a week ago and equates to about 18% of global capacity. The diverted journeys around Africa can take as much as 25% longer than using the Suez Canal shortcut between Asia and Europe, according to Flexport.